AUD/JPY gathers strength to near 97.50 as Australia's Unemployment Rate falls in November

• AUD/JPY climbs to near 97.40 in Thursday’s Asian session, adding 0.20% on the day. 
• The Australian dropped to 3.9% in November from 4.1% in October, stronger than expected.
• BoJ rate hike uncertainty drags the JPY lower. 

The AUD/JPY cross gathers strength to around 97.40 during the Asian session on Thursday. The Aussie gains traction after the release of the Australian employment report. Traders will keep an eye on the Japanese Tankan Large Manufacturing Index for the fourth quarter (Q4), which is still later on Tuesday 

Data released by the Australian Bureau of Statistics (ABS) showed on Thursday that the country’s  Unemployment Rate ticked lower to 3.9% in November from 4.1% in October. This reading came in below the market consensus of 4.2%. Additionally, the Australian Employment Change arrived at 35.6K in November from 12.1K in October (revised from 15.9K). 
 
This figure came in better than the 25.0K expected. The Australian Dollar (AUD) attracts some buyers in an immediate reaction to the upbeat employment report. This report prompts traders to lower their bets for the Reserve Bank of Australia (RBA) rate cut and boosts the Australian Dollar (AUD). 

On the other hand, the uncertainty over the Bank of Japan's (BoJ) rate hike in December might cap the downside for the cross. BoJ Governor Kazuo Ueda signaled that the next rate hike is approaching, supported by solid underlying inflation data, while the dovish policymaker Toyoaki Nakamura warned last week that the Japanese central bank must move cautiously in raising rates. Meanwhile, the escalating geopolitical tension in the Middle East and global economic uncertainty could boost the safe-haven flows, benefiting the JPY.